Research On Implicit Entry Barrier Of Public Service Outsourcing

As a public service supply mode of Cross-border cooperation, outsourcing of public services is not new in the western developed countries, but still is in the exploratory period in our country. Although outsourcing of public services has been lasted for nearly two decades Since Shanghai began to build Luoshan Civic Hall in 1995, related practices and institutional innovations are active only in Beijing and southeast coastal areas. Even in advanced areas like Shanghai, there is no uniform system specification, and Cross-border cooperation to supply public services is promoted in limited scope. In order to understand the common and important facts and guide practice in better way, this paper selected typical case and other facts, data in Shanghai from 1995 to now.After investigation, there are higher implicit barriers to entry during the outsourcing of public services, which lead to more closed organizational network boundary, and are disadvantageous for the other players to enter. What is its essence and effects? Which factors affect its formation and change? How to manage it? Theoretical significance of the problem lies to find reasons for changes in organizational network boundaries. Based on the principle of value neutrality, this paper researches and answers this question.Previous studies showed that although many scholars have noted the kind of phenomena, such as "Integration", monopoly and barriers, and studied the problem, they have not studies it from the perspective of the boundary. Since the problem is essentially a problem on boundaries of organizational network, this paper selects the organization network theory as the theoretical basis, and accordingly establishes the "identity--utility" analysis framework. Namely:explicit barriers to entry make influence on implicit barriers to entry through two intermediate variables of identity and utility and former in direct proportion to the latter. because of their interaction, organizational network boundary relatively closed.Based on the openness of boundary, this paper divides the outsourcing into four types and selects the appropriate representative cases, which are close cooperation inside the system, close cooperation outside the system, independent cooperation inside the system and independent cooperation outside the system. By comparing the formation process of the four types, this paper has confirmed the "identity-utility" analytical framework, and explained the mechanism of formation and change on implicit barriers to entry.The main conclusions of this paper are:(1)implicit barriers to entry exist objectively and is higher,which change under certain conditions;(2)Identity contact and utility preferences affect implicit barriers to entry directly; Explicit barriers to entry make influence on implicit barriers to entry through two intermediate variables of identity and utility. Implicit barriers to entry are in direct proportion to explicit barriers to entry, with their interaction, organizational network boundary is relatively closed;(3) Identities Contact include two aspects:the one in society of acquaintances and the one in bureaucratic organizations, which together constitute the informal rules of the transaction;(4) When the implicit barriers to entry is low, it is easy for potential rival to obtain an initial access rights. Once potential rival gains initial access rights, it is easy to get the opportunity to corporate again. (5)The control of implicit barriers to entry reflects the logic of government power.The purpose of public service outsourcing is to open the boundaries of the government, promote cooperation, reduce costs and meet the demand, but implicit barriers to entry are like a double-edged sword, which are both positive and negative effect. On the basis of change mechanic, from the perspective of process control, we may adjust relevant factors affecting implicit barriers to entry. Since these factors relate to all important aspects of the outsourcing of public services, this paper design the operational policies and recommendations to optimize the operation of public service outsourcing.